Investment Opportunity

I intend to start a fully automated Coconut Oil Manufacturing Unit to produce high quality Coconut Oil for both Commercial Use and Cooking.

I am looking at installed capacity of around 30-40 MT per day. Initially, the product would be sold in bulk 15kg tins/barrels and transported by tankers to the wholesalers and bulk consumers.

Coconut oil is an important cooking medium in South India, especially in the state of Kerala. Besides, the oil has varied industrial applications: It is used in the manufacture of toilet soaps, laundry soaps, surface active agents and detergents, hair tonics, cosmetics, etc. To give some examples, it is used throughout the country as hair cosmetics as it helps the growth of the hair, and as massage oil since it has a cooling effect on the body.

Owing to these qualities coconut oil has a huge market potential in the country. Since the price of coconut oil in the international market is very much lower than the domestic price, the quality and attractiveness of consumer packs are important factors to compete on in the world market. While the demand for coconut oil for cooking purpose is elastic, its demand as hair oil is inelastic.

My family is in Coconut Oil business for more than 75 years. I have the expertise, knowhow, marketing/sales network to sell the oil.

The Project have to start from scratch like indentifying the place, construct building and erect machinery etc. The gestation period would be 10-12 months. I am confident to breakeven within 4-5 years.

In addition to the capital expenses, we may need working capital from Bankers to buy raw materials.

Competitive Advantage

There are many players in the market. Tamil Nadu, Kerala and Andhra Pradesh are major producers and consumers as well. However, there is untapped market potential.

The biggest advantage we have is our Company/Family brand Value and Goodwill in the market. I come from a family with rich business traditions, including successful experience in the edible oil and coconut oil business. Our Coconut Oil Brand has a great image on the market for its quality. We are well positioned in the edible oil business circle in Tamil Nadu and Kerala. We have established sales network in Andhra, Karnataka, and Maharashtra. Our brand is in the market for nearly 25 years.

Rationale for the deal

As mentioned, there's a constant demand for quality products all over India and in the export market, and we have a long experience and tradition as players in the industry.

The idea of this project is to reintroduce the brand to the market with renewed vigor and the latest manufacturing technology, and this was gather the lost market share.

Use of financing

The Biggest advantage I have is our Company/Family brand Value and Goodwill in the market. I come from a family with rich business traditions, including successful experience in the edible oil and coconut oil business. Our Coconut Oil Brand has a great image on the market for its quality. We are well positioned in the edible oil business circle in Tamil Nadu and Kerala. We have established sales network in Andhra, Karnataka, and Maharashtra. Our brand is in the market for nearly 25 years.

The idea of this project is to reintroduce the brand to the market with renewed vigor and the latest manufacturing technology, and this was gather the lost market share.

The Investment would be used for the purchase of land and machinery, construction of a building, seed capital, working capital, pre-operative expenses and other marketing expenses.